Shell up on dividend boost, buyback
Pound cuts losses after BoE decision
Real estate stocks extend losses
FTSE 100 up 0.3, FTSE 250 off 0.3

Feb 1 Reuters The UK39;s bluechip index came off session highs on Thursday after the Bank of England BoE held interest rates steady as expected and said it would need more evidence that inflation is set to fall to its 2 target before cutting rates.

The bluechip FTSE 100 was up 0.3. It was up as much as 0.6 before the BoE39;s statement.

The pound cut some losses. Ratesensitive banks climbed 0.3, while real estate stocks extended losses on the prospect of interest rates staying higher for longer.

The BoE said it would keep under review for how long Bank Rate should be maintained at its current level. Officials at the U.S. Federal Reserve and European Central Bank have been more explicit that rate cuts are on the agenda.

It appears there no longer exists a firm commitment to keep rates at levels restrictive to economic activity. However, ratesetters are likely to tread warily and will wait to see confirmation that inflation has resumed its downward pathway before committing to policy easing, said Jeremy BatstoneCarr, European strategist at Raymond James Investment Services.

While the exact timing of the first rate cut remains in doubt, the point at which monetary policy is finally loosened is probably not all that far away.

The midcap FTSE 250 dropped 0.3, adding to losses from before the BoE decision.

Both the FTSE indexes…